Nokia's deal with Microsoft will pay off

Nokia's partnership with Microsoft to use Windows Phone may begin to pay off this year as operators search for a third operating system to complement Apple's iOS and Google's Android.

This is all according to a Tarot card reading done by the analysts at Credit Suisse who think that Nokia's focus on Windows will allow the company to drive a recovery through 2012 in both its top line and earnings. Credit Suisse boosted its rating on Nokia's shares to "outperform" from "underperform" and raised its price target.

The reading said that research among mobile operators indicates that they want Windows Phone to become the proverbial "third ecosystem" in a market that is increasingly dominated by Apple's and Google. More than 85 per cent of carrier respondents believe that there is a need for a third ecosystem and 77 per cent think it will be the Windows Phone with Nokia.

The survey also showed that both subsidy and volume share is expected to be markedly higher for Windows Phone over the next 12 months. The Credit Suisse analyst was also positive on the likely growth in sales of Nokia's success with Windows Phone handsets, claiming they would outpace Symbian-based devices by the third quarter of this year.